Directive regarding shifting and placement of Z-category company and Clearing Day for settlement

BANGLADESH SECURITIES AND EXCHANGE COMMISSION
Securities Commission Bhaban, E-6/C Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207, Bangladesh.

DIRECTIVE
Dated, 30 November 2023

No. BSEC/CMRRCD/2009-193/69:- Whereas the Bangladesh Securities and Exchange Commission (hereinafter referred to as the "Commission") deems it to be proper that in the interest of investors and securities market, certain directions should be issued to the stock exchanges with regard to shifting and placement of "Issuer of Z-category equity securities" (hereinafter referred to as the "Z-category company") and "Clearing Day" for settlement of securities and fund of such Z-category company;

Now, therefore, in exercise of the powers conferred by section 20A of the Securities and Exchange Ordinance, 1969 (Ordinance No. XVII of 1969), the Commission hereby directs the Dhaka Stock Exchange Limited (hereinafter referred to as the "DSE") and the Chittagong Stock Exchange, PLC. (hereinafter referred to as the "CSE") as well as Central Depository Bangladesh Limited (hereinafter referred to as the "CDBL"), to ensure the following, namely: -

1. DSE and CSE shall shift or transfer any issuer of listed equity securities as "Z-category company" and categorize the security as "Z-category security" immediately as per the Dhaka Stock Exchange (Settlement of Transactions) Regulations, 2013 and the Chittagong Stock Exchange (Settlement of Transactions) Regulations, 2013.

2. DSE and CSE shall also shift or transfer such securities or company as per direction No. 1, which had not been shifted or transferred earlier as "Z-category company" and categorize the security as "Z-category security" as per instructions given vide the letters issued in this respect after the Commission's Order No. SEC/CMRRCD/2009-193/08 dated 01 September 2020 (e.g., the Commission's letter No. SEC/SRMIC/94-192/PART-V/143 dated April 07, 2022 and এসইসি/এসআরএমআইসি/২০১১/১২৪০/১৫৬ তারিখ ০৫.১১.২০২৩).

Phone (PABX) : +88-02-55007131-2, Fax : +88-02-55007106, E-mail : secbd@bdmail.net, Web : www.sec.gov.bd

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BANGLADESH SECURITIES AND EXCHANGE COMMISSION
Securities Commission Bhaban, E-6/C Agargaon, Sher-e-Bangla Nagar Administrative Area, Dhaka-1207, Bangladesh.

3. No sponsor or director of "Z-category company", excluding bank, insurance company and non-bank financial institution, shall be allowed to transact (buy/sell/transfer) any of his/her share or equity security of such "Z-category company" on any platform of the stock exchanges or outside the stock exchanges in any form without prior approval of the Commission.

4. This directive shall supersede the provisions of regulation No.5(2) of the Dhaka Stock Exchange (Settlement of Transactions) Regulations, 2013 and the Chittagong Stock Exchange (Settlement of Transactions) Regulations, 2013 and effect henceforth as follows:

"Clearing Day for contracts listed under Z-category other than contracts in spot market or contracts categorized as contract type (howla) Delivery Versus Payment "DVP" shall be the third day following the Trading Day (i.e., T+3)".

5. This directive shall repeal the Commission's Order No. SEC/CMRRCD/2008-178/679 dated 15 January 2008, Order No. SEC/CMRRCD/2008-178/680 dated 15 January 2008 and Order No. SEC/CMRRCD/2009-193/08 dated 01 September 2020.

This shall have effect from 28 February 2024.

By order of the Bangladesh Securities and Exchange Commission

(Signature)
Professor Shibli Rubayat-Ul-Islam
Chairman.

Phone (PABX) : +88-02-55007131-2, Fax : +88-02-55007106, E-mail : secbd@bdmail.net, Web : www.sec.gov.bd